the basics of advertising online

The Basics of Advertising Online

Sophie Galante

Katya Bogdanov

Natasha Brainerd

Tomi Salami

Obaid Amjad

What is Online Advertising?

Search Advertising Social Media

Rich Media Affiliate Networks

Objectives

Direct-Response Brand-Building

• Awareness

• Knowledge

• Liking

• Preference

• Purchase-related

• Provide purchase motives

• Buy now!

Brand Awareness

Brand Knowledge and Liking

Bra

nd L

oyal

ty

Direct Response through Search

Direct Response through Banners

Website

The Internet delivers…

• Info distribution

• Precision targeting

• Interactivity

Info Distribution

• Relevant for high involvement products

– Electronics

– Cars

– Financial services

Financial Services

Precision Targeting

• Very effective for audience that spends the most time online

– Under 45

– Top income quartile

• Effective also for niche markets

• Targeted sales promotions

Reached perfect audience!

Interactivity

• Suitable for influencing affective responses:

– Social Presence

– Telepresence

– Involvement

– Interactivity

Brand-Building

Measuring Effectiveness

• Click through rates (CTR)

• Website visits

• Conversion rates

• Number of views/likes/shares

• Google Analytics

• And more…

Measuring Effectiveness

• Very convenient

• Highly accountable

• Can help demonstrate ROI

• Quantifies reach

• Highly suitable for direct response objectives

• But…

Limitations

• At any time, very few net users are actively thinking of purchase

• Passive users tend to not respond!

And

• Views/clicks do not measure nature of response

• Additional measures required

Measuring Effectiveness

• Traditional brand equity measurement studies

• Social media-based research

Budgeting

• Budget to be set based on objectives

• Adjusted based on success as rated based on quantitative and other data

Thank you